Iowa Market Trades on News

Most Americans say the beginning of war with Iraq is only a matter of time and Saddam Hussein's reign will soon collapse. But are they willing to bet on it? Some are doing just that at flourishing Internet sites where winners can hit the jackpot by correctly predicting what comes next in global, life-and-death matters. The Iowa Electronic Market, operated by professors at the University of Iowa since 1988, is perhaps the best known effort to apply futures market principles to political events. "People can lie to pollsters," said TOM REITZ, an IEM director and professor of economics at the University of Iowa. "The participants in our market put their money where their mouth is. If they're wrong, they have to pay."